Apple Likely to Beat Earnings Expectations, But Not a 'Buy'

Apple (AAPL) will likely beat consensus estimates when it reports earnings on Tuesday, according to Angelo Zino, Sr. Industry Analyst at S&P Capital IQ. Zino is looking for Apple to report earnings of $1.84 a share, which is higher than other analyst estimates. He's looking for revenue to increase by 30 percent. Zino said the iPhone contributes about 70 percent of Apple's overall revenue, so it will be key to hear whether Apple can continues its momentum there. He also wants to find out Apple's outlook for growth in China, as well as an update on Apple Watch sales, although he said the company may not break out those numbers. Zino said the stock has moved higher in anticipation of its earnings, and he doesn't think the stock is a buy at current levels. S&P Capital IQ currently has a hold rating on Apple stock.